{"id":10592,"date":"2022-12-08T09:57:59","date_gmt":"2022-12-08T17:57:59","guid":{"rendered":"https:\/\/www.qad.com\/blog\/?p=10592"},"modified":"2025-04-16T11:48:53","modified_gmt":"2025-04-16T18:48:53","slug":"a-guide-to-supply-chain-software-risk-management","status":"publish","type":"post","link":"https:\/\/www.qad.com\/blog\/2022\/12\/a-guide-to-supply-chain-software-risk-management","title":{"rendered":"A Guide to Supply Chain Software Risk Management"},"content":{"rendered":"<p>[vc_row][vc_column][vc_single_image image=&#8221;10593&#8243; img_size=&#8221;full&#8221;][vc_column_text]<\/p>\n<h2><span style=\"font-weight: 400;\">Understanding Supply Chain Software Risk Management<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Every industry faces unpredictability on any given day. Supply chain risk analysis is designed to combat small hiccups leveling up to more dangerous threats, like cybersecurity. A <\/span><a target=\"_blank\" href=\"https:\/\/www.whitehouse.gov\/briefing-room\/presidential-actions\/2021\/05\/12\/executive-order-on-improving-the-nations-cybersecurity\/\" rel=\"noopener\"><span style=\"font-weight: 400;\">May 2021 Executive Order<\/span><\/a><span style=\"font-weight: 400;\"> from U.S. President Biden describes these attacks as \u201cpersistent and increasingly sophisticated malicious cyber campaigns that threaten the public sector, the private sector, and ultimately the American people\u2019s security and privacy.\u201d Digital assaults are a global worry, as any platform might be next.<\/span><\/p>\n<h2><span style=\"font-weight: 400;\">What Is Supply Chain Software Risk Management?<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Risk management focuses on understanding all threats to a business. With technology front and center, secure software infrastructure is critical now more than ever. Modern companies suffer without access to appropriate tools for daily operations. Take this example: cybersecurity supply chains require hardware and software, cloud or local storage and distribution mechanisms. All these moving parts necessitate supply chain software risk management.<\/span><\/p>\n<h2><span style=\"font-weight: 400;\">What Are Risks to Supply Chain Software?<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">While the first cybersecurity incident happened <\/span><a target=\"_blank\" href=\"https:\/\/www.wired.com\/story\/hacker-lexicon-what-is-a-supply-chain-attack\/\" rel=\"noopener\"><span style=\"font-weight: 400;\">around four decades ago<\/span><\/a><span style=\"font-weight: 400;\">, supplier attacks were <\/span><a target=\"_blank\" href=\"https:\/\/www.helpnetsecurity.com\/2021\/08\/04\/supply-chain-attacks-multiply\/\" rel=\"noopener\"><span style=\"font-weight: 400;\">forecasted<\/span><\/a><span style=\"font-weight: 400;\"> to quadruple by 2021. Supply chain hacks are scary, with threats resulting in negative effects like system downtime, monetary loss and reputational damage. Thousands of <\/span><a target=\"_blank\" href=\"https:\/\/nvd.nist.gov\/vuln\/full-listing\" rel=\"noopener\"><span style=\"font-weight: 400;\">new vulnerabilities<\/span><\/a><span style=\"font-weight: 400;\"> are released every year. There are different types of software risks to consider:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Custom code software applications<\/b><span style=\"font-weight: 400;\"> &#8211; Also referred to as bespoke software, it\u2019s <\/span><a target=\"_blank\" href=\"https:\/\/www.ibm.com\/topics\/custom-software-development\" rel=\"noopener\"><span style=\"font-weight: 400;\">explained as<\/span><\/a><span style=\"font-weight: 400;\"> \u201cthe process of designing, creating, deploying and maintaining software for a specific set of users, functions or organizations.\u201d<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Open-source software<\/b><span style=\"font-weight: 400;\"> &#8211; This code is publicly accessible so that anyone can review or change it.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Off-the-shelf software from third parties<\/b><span style=\"font-weight: 400;\"> &#8211; Used daily, examples include popular email providers (Gmail, Yahoo), photo editors (Adobe) and operating systems (Mac or Windows).\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Developer software tools for building, testing, and deployment<\/b><span style=\"font-weight: 400;\"> &#8211; Information varies by industry.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Nearly all of today\u2019s applications are built on open-source code, fueling the Internet\u2019s rapid-fire updates. The most common risks to people and businesses involve:<\/span><\/p>\n<ul>\n<li><b>Malicious code packages<\/b><span style=\"font-weight: 400;\"> &#8211; These attacks are <\/span><a target=\"_blank\" href=\"https:\/\/www.cisa.gov\/uscert\/ncas\/tips\/ST18-271#:~:text=Malicious%20code%20is%20unwanted%20files,%2C%20worms%2C%20and%20Trojan%20horses.\" rel=\"noopener\"><span style=\"font-weight: 400;\">classified as<\/span><\/a><span style=\"font-weight: 400;\"> \u201cunwanted files or programs that can cause harm to a computer or compromise data stored on a computer,\u201d including viruses, worms, and Trojan horses.<\/span><\/li>\n<li><b>Remote code execution<\/b><span style=\"font-weight: 400;\"> &#8211; This type of assault happens when software is taken over in multiple steps. More <\/span><a target=\"_blank\" href=\"https:\/\/www.comparitech.com\/blog\/information-security\/remote-code-execution-attacks\/\" rel=\"noopener\"><span style=\"font-weight: 400;\">specifically<\/span><\/a><span style=\"font-weight: 400;\">, \u201cRCE attacks are all achieved by exploiting vulnerabilities in the configuration of remote computers\/servers in order to run arbitrary code on the target system.\u201d<\/span><\/li>\n<li><b>Extraction of sensitive data &#8211; <\/b><span style=\"font-weight: 400;\">Occurs from the theft, deletion, or movement of information by an authorized user.<\/span><\/li>\n<li style=\"list-style-type: none;\"><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Risk can be blamed on different internal and external issues. Internal supply chain risks happen from changes in management, employee turnover, law non-compliance, and lack of planning. In cases of non-compliance, companies are presented with rising costs of monitoring and meeting statutory tax reporting and accounting rules.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Regarding external risks, the world is <\/span><a target=\"_blank\" href=\"https:\/\/www.qad.com\/blog\/2022\/08\/supplier-relationship-management-in-a-time-of-fragmented-supply-chains\" rel=\"noopener\"><span style=\"font-weight: 400;\">in distress<\/span><\/a><span style=\"font-weight: 400;\"> due to what J.P. Morgan\u2019s <\/span><a target=\"_blank\" href=\"https:\/\/www.jpmorgan.com\/insights\/research\/global-supply-chain-issues\" rel=\"noopener\"><span style=\"font-weight: 400;\">recent research<\/span><\/a><span style=\"font-weight: 400;\"> article calls a \u201cperfect storm\u201d of factors not limited to consumer demand shifts, increased online purchases, labor constraints, COVID-19, sky-rocketing international shipping costs, inflation, high fuel costs, shifts in geographical supply and demand, calls for environmental sustainability and more.\u00a0<\/span><\/p>\n<h2><span style=\"font-weight: 400;\">What Are Supply Chain Software Risk Management Strategies?<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">From a general perspective, supply chain risk management strategies include all processes that companies take to secure supply chain software. Teams must work together to address the following steps:<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><\/p>\n<ol>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Identify<\/b><span style=\"font-weight: 400;\"> &#8211; Pinpoint areas of focus and build an action plan around priority risks.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Assess <\/b><span style=\"font-weight: 400;\">\u00a0&#8211; Review systems through a full supply chain risk analysis. Transparency is vital, so do your research. <\/span><a target=\"_blank\" href=\"https:\/\/www.thebci.org\/news\/covid-19-has-been-a-force-for-positive-change-in-supply-chain-management.html\" rel=\"noopener\"><span style=\"font-weight: 400;\">This report<\/span><\/a><span style=\"font-weight: 400;\"> found that over half (55.6%) of companies apply technology to study and report on supply chain disruptions. Implement automation for better data and decision-making.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Mitigate<\/b><span style=\"font-weight: 400;\"> &#8211; Anticipate problems and work with suppliers to alleviate issues. Most importantly, regularly review and revisit your supply chain risk management solution.<\/span><\/li>\n<\/ol>\n<p><span style=\"font-weight: 400;\">The ability to change on short notice is everything, and companies face great risks when failing to implement technology. Updated software fosters better security and reduced maintenance costs, plus new modules, products, and integration technologies to help companies achieve company- or industry-specific goals, solve problems and adapt to the current ways of working.<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\">Securing open-source components within your supply chain software is one of the most important considerations to remember. Grasping the entire software supply chain results in overall risk reduction, providing the opportunity to apply appropriate processes and tools evenly. Further protect yourself and your business from cybersecurity threats by:\u00a0<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Keeping antivirus software installed and active<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Using caution when opening unfamiliar links and attachments<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Avoiding using public Wi-Fi<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Blocking pop\u2013up advertisements<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Regularly monitoring accounts for strange activity<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Setting up a strong authentication protocol<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Security should always be prioritized. Documentation is also important to mitigating software risk, along with other specific practices:<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Know your applications end to end<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Assemble a software bill of materials<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Incorporate static application security testing for first-party code\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Keep your software up-to-date on the latest version\u00a0<\/span><\/li>\n<\/ul>\n<h2><span style=\"font-weight: 400;\">Final Thoughts on Managing Supply Chain Software Risk<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Considering the risks undermining supply chains across all industries, businesses need to create improved collaboration, optimal sourcing, and quicker ways to respond to shifts in supply and demand. <\/span><a target=\"_blank\" href=\"https:\/\/www.qad.com\/solutions\/integrated-supplier-management\" rel=\"noopener\"><span style=\"font-weight: 400;\">Integrated Supplier Management<\/span><\/a><span style=\"font-weight: 400;\"> is an integral capability that strengthens supply chains to withstand challenges and disruptions, delivering the tools to improve real-time communication. It\u2019s equally important to ensure your business is operating within a <\/span><a target=\"_blank\" href=\"https:\/\/www.qad.com\/solutions\/connected-supply-chain\" rel=\"noopener\"><span style=\"font-weight: 400;\">Connected Supply Chain<\/span><\/a><span style=\"font-weight: 400;\">. Instead of relying on spreadsheets, manufacturers gain the means to automate and streamline supplier lifecycle processes through a supplier portal, with access to a variety of QAD tools and training.<\/span><\/p>\n<p><b>To learn more about how QAD can set your business up for success, visit <\/b><a target=\"_blank\" href=\"https:\/\/www.qad.com\/about\/contact\" rel=\"noopener\"><b>our website<\/b><\/a><b>.<\/b>[\/vc_column_text][\/vc_column][\/vc_row]<\/p>\n","protected":false},"excerpt":{"rendered":"<p>[vc_row][vc_column][vc_single_image image=&#8221;10593&#8243; img_size=&#8221;full&#8221;][vc_column_text] Understanding Supply Chain Software Risk Management Every industry faces unpredictability on any given day. Supply chain risk analysis is designed to combat small hiccups leveling up to more dangerous threats, like cybersecurity. A May 2021 Executive Order from U.S. President Biden describes these attacks as \u201cpersistent and increasingly sophisticated malicious cyber campaigns [&hellip;]<\/p>\n","protected":false},"author":56,"featured_media":10593,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[182,2045],"tags":[9,1313,1333,2459,179,2458,2455,2453,2454,2457,2456],"class_list":["post-10592","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-featured","category-supply-chain-trends","tag-cloud-erp","tag-connected-supply-chain","tag-integrated-supplier-management","tag-qad-elevate","tag-risk-management","tag-risk-management-strategies","tag-software-supply-chain-risk-management","tag-supply-chain-risk-analysis","tag-supply-chain-risk-management-solution","tag-supply-chain-software","tag-supply-chain-software-risk-management"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.7 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>A Guide to Supply Chain Software Risk Management | QAD Blog<\/title>\n<meta name=\"description\" content=\"Supply chains are vulnerable to a range of disruptions and security risks. 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